McArthur Company has gathered the following data related to its production process of two of its products for the week ended April 30: Model Item #B200 Item #C440 Quantity produced 60 100 Unit-related material costs $ 42,000 $ 100,000 Variable conversion costs 72,000 300,000 Total direct costs $ 114,000 $ 400,000 Indirect costs: Indirect manufacturing costs 163,200 272,000 Indirect operating costs 255,000 425,000 Total indirect costs 418,200 697,000 Total costs $ 532,200 $ 1,097,000 The costs above that appear to be allocated rather than traced are: Multiple Choice Variable conversion costs. Unit-related material costs. Indirect manufacturing costs only. All indirect costs.
McArthur Company has gathered the following data related to its production process of two of its products for the week ended April 30: Model Item #B200 Item #C440 Quantity produced 60 100 Unit-related material costs $ 42,000 $ 100,000 Variable conversion costs 72,000 300,000 Total direct costs $ 114,000 $ 400,000 Indirect costs: Indirect manufacturing costs 163,200 272,000 Indirect operating costs 255,000 425,000 Total indirect costs 418,200 697,000 Total costs $ 532,200 $ 1,097,000 The costs above that appear to be allocated rather than traced are: Multiple Choice Variable conversion costs. Unit-related material costs. Indirect manufacturing costs only. All indirect costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
McArthur Company has gathered the following data related to its production process of two of its products for the week ended April 30:
| Model | Item #B200 | Item #C440 | ||||||
| Quantity produced | 60 | 100 | ||||||
| Unit-related material costs | $ | 42,000 | $ | 100,000 | ||||
| Variable conversion costs | 72,000 | 300,000 | ||||||
| Total direct costs | $ | 114,000 | $ | 400,000 | ||||
| Indirect costs: | ||||||||
| Indirect |
163,200 | 272,000 | ||||||
| Indirect operating costs | 255,000 | 425,000 | ||||||
| Total indirect costs | 418,200 | 697,000 | ||||||
| Total costs | $ | 532,200 | $ | 1,097,000 | ||||
The costs above that appear to be allocated rather than traced are:
Multiple Choice
-
Variable conversion costs.
-
Unit-related material costs.
-
Indirect manufacturing costs only.
-
All indirect costs.
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